As defined in the Utility Management Act utility management means performing utility services, particularly providing utility services and financing construction and maintenance of facilities. Utility management is one of the utility services, which also include development of settlements and housing, child care, welfare, consumer protection etc. However, in terms of the Utility Management Act utility services also comprise public transport, maintenance of cleanliness, disposal of municipal waste, maintenance of public areas and unclassified roads, carrying out chimney sweeping works and public lighting. All these utility services can be provided by several entities - companies, public institutions and civil services - independent facilities. A legal or natural person can perform certain services on the basis of a concession agreement or a contract on entrusting utility services. When it comes to public procurement, they are obliged to comply with regulations on public procurement, they contract goods and services, and enter different proprietary relationships.
As more or less everyone is aware, utility services come with utility charges and utility taxes. Utility charges are paid by owners or users of living, business or garage spaces, building plots and undeveloped plots. Utility taxes are paid by the building site owner or the investor. What this means is that utility taxes make up a part of the local authorities' budget, and all the funds go towards financing construction of facilities and maintaining equipment of
the communal infrastructure. Local authorities need to act in a timely manner in order to collect debts on utility taxes and take special care that the statute of limitations on the debts does not run out. The statute of limitations on utility taxes is 10 years, as defined by Article 233 of the Civil Obligations Act.
As for utility service providers and their standing, in administrative proceedings and contracts they are treated as public sector bodies, and in procedures they have the status of a legal person exercising public authority. There are three types of public authority, i.e. governing certain legal relationships, solving individual cases and exercising other public authorities. Utility service providers can also have the status of a regular party in administrative proceedings and administrative disputes. In an administrative proceeding they can be the active, passive or third party , and in an administrative dispute they can be the interested party or the plaintiff. There are certain presuppositions regarding the parties: party's competence, legitimatio ad processum and legitimatio ad causam. When a party can bear their rights and duties on their own, we call that party's competence; when they participate in the proceedings on their own and can take actions in the proceeding, we call that legitimatio ad processum, i.e. locus standi. According to some doctrines and practices, in order for a party to be able to take part in a proceeding, there is a need for legitimatio ad causam.
Above we mentioned the statute of limitations on debts, which occurs on occasions when administrative authorities fail to recover debts in a timely manner, there is, however, the option of enforcement when administrative authorities take action. The competent court for all decisions regarding a mortgage enforcement claim is the one under whose jurisdiction the property is located. Mortgage enforcement is executed by entering the enforcement in the land registry, determining the value of the property, and finally selling the property. Neither agricultural land and farm buildings in the scope in which a famer needs to support themself and their immediate family, nor property which is exempt from enforcement by law can be subject to enforcement. Determining the value of the property is a crucial stage in this proceeding. This is done by the court on the basis of substantiated findings and opinions of a court appointed expert or assessor.